Correlation Between Sisecam Resources and Huntsman
Can any of the company-specific risk be diversified away by investing in both Sisecam Resources and Huntsman at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sisecam Resources and Huntsman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sisecam Resources LP and Huntsman, you can compare the effects of market volatilities on Sisecam Resources and Huntsman and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sisecam Resources with a short position of Huntsman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sisecam Resources and Huntsman.
Diversification Opportunities for Sisecam Resources and Huntsman
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sisecam and Huntsman is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Sisecam Resources LP and Huntsman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntsman and Sisecam Resources is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sisecam Resources LP are associated (or correlated) with Huntsman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huntsman has no effect on the direction of Sisecam Resources i.e., Sisecam Resources and Huntsman go up and down completely randomly.
Pair Corralation between Sisecam Resources and Huntsman
Given the investment horizon of 90 days Sisecam Resources LP is expected to generate 0.1 times more return on investment than Huntsman. However, Sisecam Resources LP is 10.05 times less risky than Huntsman. It trades about 0.23 of its potential returns per unit of risk. Huntsman is currently generating about -0.05 per unit of risk. If you would invest 2,456 in Sisecam Resources LP on August 27, 2024 and sell it today you would earn a total of 77.00 from holding Sisecam Resources LP or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 17.36% |
| Values | Daily Returns |
Sisecam Resources LP vs. Huntsman
Performance |
| Timeline |
| Sisecam Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Huntsman |
Sisecam Resources and Huntsman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sisecam Resources and Huntsman
The main advantage of trading using opposite Sisecam Resources and Huntsman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sisecam Resources position performs unexpectedly, Huntsman can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Huntsman will offset losses from the drop in Huntsman's long position.| Sisecam Resources vs. Methanex | Sisecam Resources vs. AdvanSix | Sisecam Resources vs. Lsb Industries | Sisecam Resources vs. Tronox Holdings PLC |
| Huntsman vs. Valhi Inc | Huntsman vs. Lsb Industries | Huntsman vs. Westlake Chemical Partners | Huntsman vs. Braskem SA Class |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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